Products quality control strategy of distribution channel in three-echelon supply chain under the condition of R&D motivation

ZHU Li-long, YU Tao, XIA Tong-shui

Systems Engineering - Theory & Practice ›› 2014, Vol. 34 ›› Issue (8) : 1986-1997.

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Systems Engineering - Theory & Practice ›› 2014, Vol. 34 ›› Issue (8) : 1986-1997. DOI: 10.12011/1000-6788(2014)8-1986

Products quality control strategy of distribution channel in three-echelon supply chain under the condition of R&D motivation

  • ZHU Li-long1,2, YU Tao1, XIA Tong-shui1
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Abstract

Based on four-stage Stackelberg dynamic game analysis, this paper constructs products quality control model of distribution channel in three-echelon supply chain which is composed by one manufacturer, two retailers and the final customers, and studies how to make products quality control decision and design distribution channel strategy with R&D motivation. We develop three types of distribution channel strategy model (direct channel strategy, indirect channel strategy and mixed channel strategy), and analyze the distribution channel strategy with R&D motivation how to influence manufacturer's products quality decision, retailer's products purchase decision, expected profits function and the customer's consumer surplus. Our paper will demonstrate that: when there exists R&D motivation, products quality level, wholesales price and retailing price will increase, the manufacturer's profits will decrease, the retailer's profits and the customer's consumer surplus will increase; when the manufacturer chooses indirect channel strategy, the products quality level and retailing price will reduce, the customer's consumer surplus will also decrease; when the manufacturer who chooses low products quality takes indirect channel strategy, the customer's consumer surplus will increase; when the manufacturer who chooses high products quality takes indirect channel strategy, the customer's consumer surplus will be lowest, our conclusions will be a strong complement in the research field. Above all, we conduct an example analysis, the numerical computing results prove the model's effective and conclusion's corrective, which will indicate the further specific application direction in practice.

Key words

three-echelon supply chain / distribution channel / products quality control strategy / R&D motivation

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ZHU Li-long , YU Tao , XIA Tong-shui. Products quality control strategy of distribution channel in three-echelon supply chain under the condition of R&D motivation. Systems Engineering - Theory & Practice, 2014, 34(8): 1986-1997 https://doi.org/10.12011/1000-6788(2014)8-1986

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